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A half day Session on Oilpalm was held on 04.10.2010 in Committee Room No.142, Krishi Bhavan, New Delhi under the Chairpersonship of Shri P.K.Basu, Secretary, Department of Agriculture & Cooperation. The list of participants is at Annexure-A. The agenda of the Session is at Annexure-B. Oilpalm is covered under the existing scheme of ISOPOM which is being implemented since 01.04.2004. DAC is currently reviewing programmes for increasing production and productivity of important crops. It is also considering launch of a Mission on Oilseeds and Oilpalm in the XIIth Plan Period. The Session was organized with the objectives of understanding the importance; current status, problems, issues, potential and future strategies in respect of Oilpalm. The presentations of the Session were both technical and State specific. The discussions/suggestions of the meeting are recorded below. I. i. IMPORTANCE OF OILPALM 26.19% of vegetable oil requirement in the world is provided by Oilpalm (2008-09). It has 40% share of the world’s trade in edible oil. ii. The worldwide area planted under Oilpalm has increased by more than 150% in the past few decades. Most of this increase has taken place in South-East Asia, particularly in Malaysia and Indonesia. iii. Economic Models (AP and TNAU) establish that cultivation of Oilpalm in one hectare is financially viable on major financial indicators of NPV and IPR. Annual return exceeds annual expenditure from first harvest in Year 4 and total return is more than total investment in Year 6. iv. Oilpalm can be the primary source for achieving vegetable oil security. It is the highest oil yielding plant in the world with 5 times higher oil yield per hectare compared to other vegetable oil yielding crops. v. It has the capacity to provide year long income and employment. It has been successfully adapted to suit the need of small holders; it has, thus, proved a powerful tool for poverty alleviation in developing countries. vi. It is considered as a ‘Miracle Oil’ as it is found to be rich in Vitamin A & Vitamin E with diversity of uses for both food and non-food products. vii. It is more competitive on resource use efficiency and wider energy balance expressed as ratio of energy output to input than other oil crops.
STATUS OF OIL PALM CULTIVATION IN INDIA Large scale planting was launched from 1971 to 1984 in Kerala and Andaman and Nicobar Islands. It is increasingly being used as bio-fuel. IMPORTANCE OF OILPALM FOR INDIA India is the 4th largest edible oil economy in the world. It is used to produce oleo-chemicals which are more environment friendly than petrochemicals. population increase. Palm Oil and Soybean are major components of these imports. in 2009-10 b. i. About 25% of the harvested bio-mass may be returned to the field as nutrient rich mulch. III. . It can. The situation could get aggravated if oil exporting countries divert considerable quantities for bio-fuel production. II. Global demand for Palm Oil is projected to grow from 2005 level of 20 million tons per annum to 40 million tons in 2020. Per capita consumption in India is still at a very low level compared to other countries. x. Half of the total edible oil requirement of 16. ix. TMOP was launched in 1991-92 and was replaced by ISOPOM in April. The ability of meeting the requirement of edible oil through imports may be short-lived. The net area under Oil Palm up to 2009-10 is 155203 hectares. However. 2004. iii. The primary reasons for acute shortage in domestic vegetable oil production are: a. therefore. safety be assumed that the total vegetable oil requirement is bound to increase in the coming years. increase in per capita consumption of vegetable oils (highly income elastic) from 6. ii. 27. 8585 hectares were covered till 1991-92. Since domestic production of palm oil can meet just 1% of the requirement.000 crores in 2008-09.20 kg. iv.viii. in 1986-87 to 14 kg. India has become the world’s largest importer of Palm Oil followed by China and EU. nearly 17900 hectares were uprooted due to several reasons.35 million tons was met through imports at a cost of Rs. 173143 hectares were covered under Oil Palm up to 2009-10.
V. the achievement against area projection up to the year 2010-11 is 60%.36. About 76% of the total potential area in India is in the States of Andhra Pradesh. i. viii. rubber in Kerala. The implementation is insignificant in Goa. v.IV. However.78 lakh hectares covered against assessed potential of 10. Kerala. Crop nutrition is inadequate and imbalanced. Orissa and Tamil Nadu. Low yield realization in general. Karnataka. Mizoram. iii. sugarcane in Gujarat. Goa. Andhra Pradesh. ix. Gujarat. Kerala. RECOMMENDATIONS OF THE CHADHA COMMITTEE The Chadha Committee has. Assam and Tripura are not implementing the Programme. Mizoram. x. West Bengal and Tripura due to non-interest of the concerned States. Chattisgarh. Poor water availability throughout the area is leading to instability in production. Improper and inadequate guidance for new plantations. Non availability of quality hybrid seed. ii. The actual achievement against total area projection of Chadha Committee is only 15%. Targets based on macro level projections of potential area. Goa. . Planting oil palm in less suitable regions.e. vi. Karnataka. Uncertainty regarding area expansion programme/ targets. Oil Palm is a water loving crop with requirement of 120 to 150 mm per month. Karnataka and Tamil Nadu. Availability of quality planting material of correct age is inadequate and uncertain. VI. in its 2006 Report. The Committee did not recommend any area for Assam. The Session was of the view that the Oil Palm Development Programme in the country is progressing at a slow pace and area coverage is not taking place as per envisaged targets.36 lakh hac. Competition: Sharp spurt in the prices of traditional crops like Arecanut in Karnataka. iv.500 hectares in 9 States viz. Gujarat. identified potential area of 10. Maharashtra. Four identified States i. vii. West Bengal. CONSTRAINTS IN OIL PALM DEVELOPMENT Slow pace of area expansion: only 1. Orissa. it is being implemented in 72 districts of only 8 States viz. Andhra Pradesh. OIL PALM UNDER ISOPOM The Oil Palm Development Programme under ISOPOM has been approved for 12 States. Tamil Nadu.
Returns from oil palm are not being maximized through diversification.29 lakh hac. 5434/. 1. enactment of legislation etc. Inadequate financial support by Government: The total expenditure for the last 6 years has been Rs. 170 crores at an average of Rs. Processing problems: lack of processing plants in States like Mizoram and Gujarat. 28 crores p.a. xiv. The Market Intervention Scheme (MIS) has been applied to oil palm but it has not been facilitative or encouraging. by the end of XIth Plan (i. West Bengal. reaching Rs. in the last 2 years only. xii. operated only once in Andhra Pradesh and Karnataka in 2008. Non implementing States such as Assam. VII SUGGESTIONS MADE IN THE SESSION BY PARTICIPANTS FOR OIL PALM DEVELOPMENT 1. The prices of oil palm/ FFB increased steadily from Rs. xvii. xvi. But there was a sudden fall in FFB during 2009-10 to Rs. 40 crores p. Resource and security related issues viz.in 2008. The present cost of cultivation is approximately Rs. The FFB price fixing formula (12% of CPO plus 1/3rd of Kernel value) is adhoc and unremunerative. There is lack of utilization of bio products by processing industries. xix.MT of FFB.e.per MT. FFB price is unrumenerative to enthuse farmers for intensive palm cultivation. implementation of crop insurance schemes. Manipur. i.MT in 1993 to Rs. Assess potential in other suitable States like Arunachal Pradesh.5% on refined oil.xi. credit from commercial Banks and NABARD. A minimum amount of Rs. Tripura and Maharashtra to implement OPDP. Low oil extraction ratio. non optimal utilization of existing Mills and other inefficiencies in processing. 4075/.20 lakh hac. Jharkhand. 8750/. 4750/. ii. Domestic prices of oil palm are significantly affected by cheaper imports from Malayasia and Indonesia hence fluctuate considerably. Import Policy: Import of edible oil was brought under OGL in 1995. xiii.MT of FFB produced (source: National Oil Palm Farmers’ Association). Meghalaya and Eastern U.P. in 2010-11 and 2011-12). xviii. 645 crores is required as share of GOI for assistance for new plantations to achieve the Chadha Committee target of 2. .a. 2000/. Thus farmers are incurring loss to the tune of Rs. Pondicherry. xv. Present import duty is 10% on CPO and 7. Bihar. Area Expansion Expand area as per assessed potential and recommendations of Chadha Committee. iii.
vi. iv. Convey area expansion targets atleast 2 years in advance. gardens. Simplify procedures of area allocation. Expand and strengthen existing 6 seed gardens.64 million. Improve Oil Palm Yield Aim for average productivity of 5 MT oil per hectare or 20 tonnes/ hectare of FFB. Integrated approach to crop production viz. diversification of import sources (need to import other than material Costa Rican. Expanding of germplasm base. inter crop. Expedite tissue culture and micro propagation to produce oil palm sprouts on commercial scale. iii. viii. vii. Country should negotiate for supply of parental lines while importing sprouts. Procure good quality material through import: Joint venture with reputed foreign companies. planting material.3 lakhs. Conventional breeding is extremely slow and breeding cycle can take up to 10 years. vii. Fix uniform price for Oilpalm seedlings. . Relaxation of land ceiling norms: treat oil palm as a plantation crop. drip irrigation etc. v. consider Malaysian material).50 lakh sprouts. 3. Indigenous production is estimated as 5.94 million: the requirement of sprouts to achieve Chadha Committee target upto 2011-12 is 18. Follow hub and spoke model with a processing unit as the hub for area expansion: ensure simultaneous allotment of area to a Company. seed production will commence only after 10 years. vi. viii. 2. ii. Scope exists for enhancing capacity by 20. i. New seed gardens need to be established on war footing.iv. Private entrepreneurs should be encouraged to establish seed v. Bridge anticipated gap in seed production. ix. ii. Enhance subsidy limit for area expansion from 15 hectare to 25 hectare. i. fertilizers. Cover suitable area in Wastelands. x. Assessed potential is 48. particularly in respect of dwarf and stress tolerant varieties/ hybrids. Planting Material Ensure adequate and timely supply of quality planting material. Micro level survey for area expansion in different States to ensure spread of suitable area with assurance of irrigation.
iv. 6. priority should be given to expand area under existing mills to achieve capacity utilization and reduce production costs. palm trunk for furniture. i. . empty fruit bunches for making coir fibre. POME as a substitute for fertilizer. iii. iv. improving pollination. i. avoiding long harvesting intervals and avoiding exposure to rain. Government schemes should support inter-cropping particularly during gestation period. Insulate and secure oil palm cultivation from fluctuations. v. Provide production based incentive to farmers. ii. marketing and pricing. Review current import duty regime of CPO and RPO. Processing Ensure capacity utilization of existing processing units. b. 4. 5. Assess Malaysian techniques for direct extraction of refined oil instead of producing CPO at the inter-mediate stage. Improved return from oil palm Promote value addition through diversification and effective utilization of field and factory wastes: a. Implement MIS as an effective interventionist instrument. iii. Improve oil extraction by harvesting at right maturity. ii. Establish small scale palm oil mill in Mizoram and operationalise the existing mill in Gujarat to restore confidence of farmers and boost oil palm production. Review of FFB price fixing formula by NRCOP: National Oil Palm Farmers Association has suggested revision of FFB from existing 12% of the CPO plus 1/3 of kernel value to 16% of CPO plus ½ of value of oil by-products. palm kernel shells and palm press fibre as boiler fuel. Adopt integrated and remunerative farming system on account of long gestation period and perennial nature of growth. ii. shredded fronds for vermi composting and mulching. e.iii. minimum stalk length. Announcement of import policy on long term basis taking into consideration its effect on local seed oil production. Maintain uniform price fixing formula in entire country by carrying out cost of cultivation analysis in respective States. i. c. Also consider special incentive on yield of more than 25 MT hectare of FFB after year 8. d. Improve efficiency of processing.
suggestions include collecting certain percentage of money from FFB sale. Implementation of crop insurance scheme. Enhance cultivation subsidy of Rs. Harvesting is done either by climbing the tree or through an aluminum pole attached to a sickle. vi. assistance if oil palm is up-rooted/diverted without justification. Increase in subsidy on drip irrigation from 2 hectare per farmer upto 5 hectare per farmer due to revision of NMMI iii. Evolve hybrids with high FFB yields. Mechanization i. Import of superior gadgets for harvesting from Malaysia/other countries.v. iv. Strengthen contractual system of oil palm cultivation. Andhra Pradesh.e. Enactment of Oil Palm Act on mandatory basis in all States. processing etc. Improved harvesting machinery: at present crop height is a serious problem for harvesting in adult plantations of more than 10 years age. 8. Improvement in processing technology for obtaining better OER with low FFA.500 per hectare to Rs. . 15500 per ha for 4 years is admissible up to 15 ha for individual farmer ii. Establish Oil Palm Board to consider planting. Sensitize commercial banks and NABARD for promotion of oil palm cultivation.000 per hectare. Develop a mechanism to enable farmer to obtain & sell carbon credits (at fixed price) as carbon can be sequestered and credited for oil palm. 15. Development of improved tools and machinery for harvesting to be taken up on priority basis. RESEARCH STRATEGIES (IMMEDIATE): IDENTIFIED BY ICAR i. ii. General Points i. v.40. ii. Streamlining methodology for fixing FFB price on scientific basis. Establish soil and leaf testing labs. Development of tissue culture protocol for micro propagation of elite palms. Law should provide for provisions to recover govt. expansion and development of oil palm production. vi. Tamil Nadu. Cultivation cost of Rs. vi. iii. vii. Creation of price stabilization fund for oil palm growers. Evolve dwarf hybrids. iii. Only 4 States i. v. iv. Goa and Mizoram have introduced legislation. 9. Subsidy should cover aluminum pole and chaff cutters at higher rates. 7.
West Bengal.10.7500/ha to 85% of the cost limited to Rs10000/ha enhancement of cultivation cost during gestation period of 4 years from existing Rs.20000/ha provide assistance for inter-cropping. ii. there is remote possibility of consideration of new interventions under EFC process at this stage). Work has already been initiated on developing a Mission. SHORT TERM ACTION POINTS However.15500/ha to Rs. most of the suggestions/recommendations will be considered and accommodated under the proposed Mission for the next plan period (because 2011-2012 being the last year of the current Plan period. Tripura and Maharashtra to implement OPDP from 2011-12 if not from current financial year itself. Therefore.e. within the XIth Plan period and under the existing Scheme: i. extend program to States recommended by Chadha Committee but not covered under ISOPOM viz Chattisgarh b. carry out revision in following components on an urgent basis as recommended by Chadha Committee: enhance assistance on planting material from existing 75% of the cost limited to Rs.30. certain actions are proposed in the short-term i. Identification of other potential States for oilseeds and oil palm by concerned ICAR directorates within a month. PROPOSED STRATEGY Oil seeds and Oil palm have been identified by the Department for launch of a Mission in the Twelfth Plan period. b. Four regional workshops with States (including potential states) to finalize interventions under the Mission. Identified but non-implementing States of Assam.00 lakh for 15 ha as recommended by Chaddha committee . Seek approval of competent authority to implement following with immediate effect: a. A session to review the existing ISOPOM Scheme was held under the Chairpersonship of AS (AB) on 5th October 2010. Norms to be finalized in consultation with NRCOP encourage establishment of seed gardens by private sector by providing assistance as grant of Rs. Future work includes the following two stage process: a.
Bihar. States (already covered and potential) to undertake micro level survey for area expansion to ensure spread on hub and spoke model and assured irrigation. States to complete survey by March 2011. xi. An Expert Committee should re-assess requirement of sprouts as area expansion has not taken place in accordance with the recommendations of Chadha Committee and propose future strategy of expansion/establishment of seed gardens by March 2011. DAC to consider and recommend review of import duty/policy to Ministry of Commerce. March 2011 is proposed as a timeline for most activities so that the recommendations of Committees/Expert groups can feed straight into the Mission. Patna. Eastern U. Consider import where feasible and develop suitable machinery for indigenous production. DAC in turn will approve the Action Plan for 2011-2012 by December 2010. . It should also make xiii. DAC to set up a technical committee to assess potential in other States outside purview of Chadha Committee recommendations such as Arunachal Pradesh. etc. NRCOP to review FFB price fixing formula by March 2011. of India to find ways and means to support palm oil mills in Mizoram and Gujarat. Funds to be assured by DAC for higher investment in Oil Palm in that year. M&T Division of DAC/ICAR to review harvesting machinery available for oil palm in other countries. x. Private sector to be actively involved in this.iii. vii. xii. ICAR to consider and suggest time line on the immediately identified research strategies. xiv. Jharkhand. Initiate action to strengthen existing seed gardens and set up new gardens. Goa and Mizoram. NRCOP to suggest time line for development of tissue culture. xv. Enactment of Oil Palm Act by implementing States on the basis of existing legislation in Andhra Pradesh/Tamil Nadu. Committee to give report by March 2011 iv. v.P. recommendations on possibility of maintaining uniform price. Pondicherry. Govt. Depute a team to Malaysia to consider possibility of import of germplasm from that country and study the technique for direct extraction of refined oil. States should utilize available funds under micro irrigation/RKVY/NREGA to bring irrigation to existing plantations. ix. Manipur. Meghalaya. viii. vi. States covered under ISOPOM to communicate Oil palm development program for 2011-12 to DAC by November 2010.
K. Ltd. Director (Hort. Fate & Fert. Dy. Hyderabad 26. Director (Pulses) DAC. D. Kerala 16. New Delhi Dte. Under Secretary (TMOP) DAC.) Mizoram 21. Patel. New Delhi Secretary DAC. Anita Patheja. Shri Sanjay Goenka. 28 Shri Govindan. Singh. New Delhi 13. Arvlraj. Shri C. 5. Tamil Nadu Indian Council of Agricultural Research & others 24. S. Lohakare. S. Director(TMOP) 6. Dr. Shri Ashish Bahuguna . Shri K. Mumbai . AS (TMOP) 3. Maharashtra 23 Shri A. Dr. Director of Agri. Joint (TMOP). New Delhi NOVOD Board. New Delhi 9. Director (Oilseeds) DAC.L.) Andhra Pradesh 19. Ex. Punia. Chairman Food. Programmer DAC. New Delhi 14 Shri Ranvir Singh. Shri. Chadha. Director (Horticulture) Chhattisgarh 17.P. Shri M. Shri M.Singh. New Delhi DAC. Scheme Officer (Oilpalm & Janpath Bhawan. M.S. Mizoram 18. Secretary (A&C) 2. Under Secretary(Project) DAC. Director of Horticulture. (TMOP) 7. Hyd. Smt. Shri R.S. New Delhi 12. Addl. Chauhan. Vice-President (PGV). Sh. Godrej Agro Godrej Agrovet. T.P. Lal jiLiana. 4.K. Director (Hort.Dy.) /Retd. Scientist DOPR.K. Managing Director KOTTAYAM.K.. Shri. Director Agri. Dy. Vaukunta Rao.No. & Others 15. Executive Director. Hyderabad 8.P. Jt. Gurumukhi. Sh. Director DOPR. Dr. Singh. Retired 25. Mathur. Dr. R. Shri Satya Babu. Asstt. Sh. Pr.10./Hort.A. Shri Kamal Jeet Singh. Bhattacharjee. D. Director Official Address In Chair DAC. Mrs. Addl.2010 List of Participants S. Director(TMOP) DAC. Shri Sudhindhra Kumar. Dy. Shri Alok Katiyar. Ravindran.Comm.L. of Oilseeds Dev. Jaswal. Dr. Sh. Gujarat 22.DDG (Hort.P. Sh. Gurgaon DAC. Seed Officer (Pulses) DAC. D. Director (Agri. R. Jt. Shri P. New Delhi 12. New Delhi Maize) State Govt.) Bangalore 20.N.M.Annexure-A Session on Oil Palm held on 4. Director of Agri. Maheshwari. Asstt. New Delhi 11. New Delhi 10.) ICAR. R. Manoharan. Hyderabad 27.D. Name & Designation Government of India 1. Upma Chawdhry.Basu.
55 PM 3. Hyderabad Dr.00 PM cultivation in India Industry perspective of Oil 3. R. issues etc.30 – 3.30 PM Status of Oil Palm 2.45 PM 3.Annexure-B Agenda of the Session on Oil Palm to be held on 4th October.45 – 3.45 – 3. Directorate of Oil Palm Research. Vice President. Director. Krishi Bhavan.05.20 PM Mizoram 10.35 – 2. its potential. OR Mr.N. 3-5874/7&8. Sanjay Goenka.R. 2010 in Committee Room No. Arulraj. 2nd Floor. Chadha Andhra Pradesh 4 5 6 7 8 9 Strategy for Oil Palm Successful implementation of Oil Palm Programme in the State Non-Implementation of ISOPOM Potential areas for extending Oil Palm cultivation Small but significant and active Summing Up 3. Pedavegi Mr. Presenter Secretary.30 PM DDG(Horticulture) .20 – 4.45 PM Development Programme under ISOPOM An overview of Oil Palm 2. DAC and AS(AB) JS(TMOP) 3 Dr.15 – 3.00 – 3. Govindan. 1 2 Topic Time Opening Remarks 2. Godrej Oil Palm Ltd.55 – 4. Foods Fats & Fertilizers Ltd. Vice President. S. New Delhi S.05 PM Maharashtra Chhattisgarh 4. K.15 PM Palm Sector.142.. Hyderguda. 4. – 4. L. M/s.30 PM 3.
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